JPMorgan: The US dollar is still overvalued by 5 to 15% against major currencies.

Jin10 data reported on July 9 that JPMorgan believes that even if the dollar reaches a low point in this cycle, it is still overvalued by 5% to 15% against major currencies based on long-term valuation models; as cyclical spreads narrow and asset allocation adjustments continue, the dollar is expected to have downside potential. The report pointed out that the reasons supporting the expectation of further dollar weakness include the narrowing of the economic advantage of the U.S. compared to other economies, a slowdown in foreign capital inflows, and increased safe-haven activities. The bank continues to recommend that U.S. investors diversify their international allocations and that non-U.S. investors properly manage their dollar exposure.